I recently wrote about out how I was looking into disability insurance. In that article, I made a mention that I really should review my life insurance. Why? Because with the birth of our second child my obligations have expanded. If either my wife or I died, the other would be left to support both of the children.
Not only that, but we have a few real estate properties. When we have tenants in all of them (and the tenants are happy) everything runs smoothly. However, things don't always go smoothly and sometimes you have to replace tenants and find new ones. In the meantime, you still need to make the mortgage payments (at least for the next 15 years until we have them paid off. One person working full-time and taking care of the kids is enough to do without having to deal with the hassle of managing properties.
The biggest question is whether to get whole life or term life. Whole life is when you have life insurance for the rest of your life. It can get expensive, because as long as you pay the premiums, they have to pay out the benefit. Term life is life insurance for a specific term. For example, we might get life insurance for 20 years. At that point our children will be close enough to being able to take care of themselves (we hope!), so we don't need the same coverage to raise them.. I prefer term life. It is cheaper and fits my needs of covering our obligations. Life insurance terms and details can get confusing, so I like the simplicity of term life as well.
I had a reader suggest that I buy life insurance through AAMI, but as that appears to be an Australian company it isn't exactly the best for me in the United States. Plus, I'm happy with the life insurance provider I got after we had our first child. It is one of the few times that I'm happy to pay for a service that I hope I'll never benefit from.
All this about life insurance reminds me that I have to update my estate planning as well. It's time to make sure that I've got my will updated to include the new little man.This post deals with: ... and focuses on: